Metrics

Gross Revenue Retention (GRR)

The percentage of recurring revenue retained from existing customers over a period, excluding expansion revenue. GRR can never exceed 100%.

What is Gross Revenue Retention?

Gross Revenue Retention (GRR) measures how much recurring revenue you keep from existing customers, accounting only for contraction and churn — not expansion. Unlike NRR, GRR can never exceed 100%.

Formula

GRR = (Starting MRR - Contraction - Churn) ÷ Starting MRR × 100

GRR vs. NRR

Metric Includes expansion? Max value Shows
GRR No 100% Retention floor
NRR Yes Unlimited Total growth from existing

Benchmarks

Segment Median GRR Top quartile
Enterprise 90-95% 95%+
Mid-market 85-90% 92%+
SMB 75-85% 88%+

Why GRR Matters

GRR reveals your true retention foundation. A company with 120% NRR but 75% GRR is masking significant churn with expansion — an unsustainable pattern.

Improving GRR

  1. Reduce churn — Proactively address at-risk accounts
  2. Minimize downgrades — Demonstrate value to prevent contraction
  3. Right-size deals — Avoid overselling that leads to later downgrades
  4. Value delivery — Ensure customers achieve outcomes that justify their spend

Related terms

Net Revenue Retention (NRR)Churn RateExpansion RevenueCustomer Success

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